Monday, June 3, 2013

DJIA and Nasdaq 100

for week starting 3-Jun-2013


Its bearish, but does this candle represent anything for US?
Well, it has hit 3L (blue) target or a 4L (orange) target near 15500 pts.
and formed a reversal candlestick pattern, followed by a bearish candle this week.

Let's take some clue from Dec'2012 (6 months ago), this pattern has formed after a series of positive candle, it wasn't an all time high, and market continue to skyrocket, it could be a history repeating by itself.

Stock market, one direction..  Up... Fed policy causing it?

Last week, Economic Data, positive.
Consumer confidence above expectation.
Unemployement Claims risen.

Take a look at Daily Chart.
When we look further, we have better idea of where the market is leading us.
With this bearish engulfing pattern, we are pretty sure market is going to suffer more loss this coming Monday.

I would prefer to trade with initial shadow on Monday, short at 30 pts above opening.
SL 50 pts, TG 150 pts.

Market could possibly find support near 15000 pts, but attempt to dive down to 14900 pts.
Target 14750 pts -- strong support.

Just in case market repeats by itself, some fundamental changes (like, fed decision) would lead DJIA back on track to resume uptrend.
Resistance 15530 pts (black)(batman head),
breaking above 15530 ptrs means DJIA could go all the way towards 15850 pts.

Personally, I would love to place short entry on Monday.
Short at 30 pts above opening.
SL 50 pts, TG 150 pts, TG2 14900, TG3 14750 pts.

Nasdaq 100

Refer to my last post on 27-May, I really hope  that market could  touch 3070.

It works quite similar to Dow.

but we do not have bearish engulfing.
So again, I am less bearish. :-P

For short term trading, I guess I would end up entering Short entry near 3005 pts, SL 3020 (again!), TG 2885 pts.

For the weekly position I would hunt to short near 3015-3020 pts, SL 10 pts above , TG 2945 pts.


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